Bendigo Bank flags workforce shake-up after Infosys, Genpact deals
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The news: Bendigo and Adelaide Bank has announced new strategic partnerships with technology consultancies Infosys and Genpact, which are set to impact the bank’s technology and business operations teams.
The numbers: Bendigo said the seven-year agreement with India multinational Infosys will “significantly improve” the bank’s IT service delivery capability and provide access to software engineering and AI talent.
The six-year business operations partnership with NYSE-listed Genpact is aimed at process optimisation and delivery to support improved productivity and stronger risk management across the bank.
The bank expects an annual run rate expense benefit of $65-75 million by FY28 as a result of the changes. The majority of the upfront transition costs of $85-95 million are expected to be incurred in FY27.
Bendigo also reported unaudited cash earnings of $137.9 million for the third quarter, marking a 7.6% increase from its first-half quarterly average. Statutory net profit after tax of $109.4 million was down 5.1% compared to the first-half quarterly average.
Net interest margin was 1.98% for the quarter, up 6 basis points on the previous quarter.
The context: Bendigo said the workforce changes are “yet to be finalised” and “employees will be consulted on roles and team structures”.
It said the strategic partnerships with Infosys and Genpact form part of the second phase of the bank’s productivity program, aiming to make its operating model simpler and more efficient.
What they said: “Decisions that impact our people are never easy,” said Bendigo CEO and managing director Richard Fennell.
“We acknowledge this will be a challenging time for our people and we are committed to lead these changes with care and respect.”
The sources: ASX, UBS research
